Latest Ratios: P/E Ratio 7.9x · EV/EBITDA 3.5x · ROE 10.5%. (2001–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $80M | $82M | $77M | $51M | $66M | $71M | $61M | $84M | $109M | $120M | $183M |
| Enterprise Value | $48M | $50M | $53M | $30M | $47M | $56M | $52M | $77M | $106M | $131M | $209M |
| P/E Ratio → | 7.93 | 8.23 | 10.82 | 10.57 | 10.57 | 8.99 | 7.82 | 7.61 | 5.31 | 8.04 | 12.72 |
| P/S Ratio | 2.24 | 2.30 | 2.59 | 2.11 | 2.21 | 2.18 | 1.83 | 1.97 | 2.00 | 2.27 | 3.55 |
| P/B Ratio | 0.81 | 0.84 | 0.84 | 0.58 | 0.76 | 0.86 | 0.78 | 1.11 | 1.54 | 1.95 | 4.89 |
| P/FCF | 5.96 | 6.13 | 8.57 | 7.32 | 7.76 | 7.03 | 5.85 | 5.92 | 5.16 | 6.12 | 10.14 |
| P/OCF | 5.77 | 5.93 | 8.28 | 7.10 | 7.56 | 6.86 | 5.76 | 5.84 | 5.08 | 6.06 | 10.04 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.40 | 1.80 | 1.23 | 1.57 | 1.72 | 1.54 | 1.80 | 1.93 | 2.47 | 4.07 |
| EV / EBITDA | 3.54 | 3.71 | 5.86 | 4.51 | 4.63 | 5.08 | 4.46 | 4.72 | 4.28 | 5.28 | 8.66 |
| EV / EBIT | 3.62 | 3.79 | 6.02 | 4.67 | 4.73 | 5.19 | 4.55 | 4.69 | 4.29 | 5.33 | 8.79 |
| EV / FCF | — | 3.74 | 5.96 | 4.28 | 5.51 | 5.57 | 4.93 | 5.41 | 4.99 | 6.64 | 11.62 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 70.1% | 70.1% | 69.4% | 50.1% | 71.9% | 72.3% | 73.6% | 51.6% | 56.0% | 57.8% | 58.3% |
| Operating Margin | 37.0% | 37.0% | 29.9% | 26.4% | 33.2% | 33.2% | 33.9% | 37.5% | 44.8% | 46.3% | 46.3% |
| Net Profit Margin | 28.0% | 28.0% | 23.9% | 19.9% | 20.9% | 24.1% | 23.5% | 25.8% | 37.8% | 28.2% | 27.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 10.5% | 10.5% | 7.9% | 5.5% | 7.3% | 9.8% | 10.2% | 15.1% | 31.1% | 30.2% | 47.6% |
| ROA | 6.4% | 6.4% | 4.8% | 3.3% | 5.0% | 8.0% | 7.6% | 10.0% | 19.9% | 16.3% | 18.2% |
| ROIC | 7.3% | 7.3% | 5.1% | 3.8% | 7.0% | 10.0% | 9.9% | 12.9% | 20.3% | 23.7% | 28.4% |
| ROCE | 8.7% | 8.7% | 6.1% | 4.5% | 8.4% | 11.7% | 12.0% | 16.3% | 26.8% | 30.8% | 34.8% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.41 | 0.41 | 0.44 | 0.45 | 0.46 | 0.01 | 0.00 | 0.23 | 0.31 | 0.42 | 0.81 |
| Debt / EBITDA | 3.01 | 3.01 | 4.45 | 6.01 | 3.93 | 0.09 | 0.03 | 1.07 | 0.88 | 1.05 | 1.25 |
| Net Debt / Equity | — | -0.33 | -0.26 | -0.24 | -0.22 | -0.18 | -0.12 | -0.10 | -0.05 | 0.17 | 0.71 |
| Net Debt / EBITDA | -2.38 | -2.38 | -2.57 | -3.20 | -1.89 | -1.33 | -0.83 | -0.45 | -0.15 | 0.42 | 1.10 |
| Debt / FCF | — | -2.39 | -2.61 | -3.04 | -2.25 | -1.46 | -0.92 | -0.52 | -0.17 | 0.52 | 1.48 |
| Interest Coverage | — | — | 3.90 | 2.81 | 4.64 | — | 25.32 | 15.09 | 20.07 | 19.51 | 19.31 |
Net cash position: cash ($72M) exceeds total debt ($41M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 12.72 | 12.72 | 13.78 | 15.20 | 13.07 | 3.54 | 2.63 | 2.55 | 2.55 | 1.84 | 0.90 |
| Quick Ratio | 12.72 | 12.72 | 13.78 | 15.20 | 13.07 | 3.54 | 2.63 | 2.55 | 2.55 | 1.84 | 0.90 |
| Cash Ratio | 12.05 | 12.05 | 12.90 | 14.43 | 12.40 | 2.85 | 1.96 | 2.17 | 2.11 | 1.26 | 0.32 |
| Asset Turnover | — | 0.22 | 0.19 | 0.16 | 0.21 | 0.32 | 0.35 | 0.39 | 0.50 | 0.54 | 0.61 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 5.3% | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | 42.2% | 42.2% | 0.1% | 86.0% | 65.3% | 50.3% | 50.6% | 32.1% | 14.0% | 14.8% | 10.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 12.6% | 12.2% | 9.2% | 9.5% | 9.5% | 11.1% | 12.8% | 13.1% | 18.8% | 12.4% | 7.9% |
| FCF Yield | 16.8% | 16.3% | 11.7% | 13.7% | 12.9% | 14.2% | 17.1% | 16.9% | 19.4% | 16.4% | 9.9% |
| Buyback Yield | 0.6% | — | — | — | — | — | — | — | — | — | — |
| Total Shareholder Yield | 5.9% | — | — | — | — | — | — | — | — | — | — |
| Shares Outstanding | — | $8M | $8M | $8M | $8M | $7M | $7M | $8M | $8M | $8M | $8M |
AUM concentration and outflows
According to current market data, HNNA trades at a P/E of 8.13 and a P/S of 2.29, which suggests that investors are pricing the firm as a yield-oriented consolidator rather than a growth vehicle, despite the potential optionality provided by its substantial cash-to-market cap ratio.
The low P/E multiple relative to broader financial services peers indicates a market skepticism regarding the firm's ability to generate organic AUM growth. This valuation appears to bake in a terminal decline scenario, potentially ignoring the value of the firm's ability to acquire and integrate orphaned fund contracts at accretive multiples.
Based on reported figures, ROIC has remained compressed in the 0.8% to 2.2% range over the last ten quarters, which suggests that the firm's heavy reliance on goodwill from past acquisitions significantly dilutes the return generated on its total invested capital base.
While the firm maintains high operating margins, the low ROIC highlights the challenge of deploying capital into management contracts that require significant upfront investment. Investors should monitor whether future acquisitions can achieve higher hurdle rates to improve these returns, or if the current capital base will continue to drag on performance.
As reported in quarterly financial statements, the firm's DSO has remained remarkably consistent, hovering around 30 days, which indicates that the collection of advisory fees from intermediaries remains efficient despite the inherent market-driven volatility in the underlying AUM valuations.
The stability in DSO suggests that the firm's revenue cycle is well-managed and not subject to significant credit risk from its distribution partners. This operational consistency provides a reliable cash flow baseline that supports the firm's dividend policy, even during periods of market-induced revenue contraction.
According to recent SEC filings, HNNA maintains a disciplined debt-to-equity ratio of approximately 0.41, which positions the firm with a fortress balance sheet that provides significant protection against the interest rate sensitivity and refinancing risks often observed in more highly leveraged asset management peers.
The low debt burden allows the firm to maintain operational flexibility, ensuring that it can continue to pursue fund acquisitions even during market downturns. This conservative stance appears to be a deliberate strategy to mitigate the risks associated with the firm's reliance on US equity market performance.
As indicated by the firm's unique business model, the P/E ratio is frequently misapplied to HNNA, as it fails to account for the significant non-cash amortization of intangible assets that artificially depresses GAAP earnings and obscures the firm's true cash-generative capacity for potential acquirers.
Analysts should instead focus on P/FCF or EV/EBITDA, which better capture the firm's ability to convert AUM into distributable cash. Relying solely on P/E may lead to an undervaluation of the firm's core earnings power, as it treats the amortization of acquired contracts as a recurring operational expense rather than a historical cost of growth.
Includes 30+ ratios · 25 years · Updated daily
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Quick answers to the most common questions about buying HNNA stock.
Hennessy Advisors, Inc.'s current P/E ratio is 7.9x. The historical average is 12.6x. This places it at the 15th percentile of its historical range.
Hennessy Advisors, Inc.'s current EV/EBITDA is 3.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 6.5x.
Hennessy Advisors, Inc.'s return on equity (ROE) is 10.5%. The historical average is 19.7%.
Based on historical data, Hennessy Advisors, Inc. is trading at a P/E of 7.9x. This is at the 15th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Hennessy Advisors, Inc.'s current dividend yield is 5.33% with a payout ratio of 42.2%.
Hennessy Advisors, Inc. has 70.1% gross margin and 37.0% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Hennessy Advisors, Inc.'s Debt/EBITDA ratio is 3.0x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.